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REPRINT NUMBER 46105
How To Build Collaborative Advantage
For multinationals, it is increasingly difficult to maintain competitive advantage on the basis of the traditional economies of scale and scope. Future advantage will go to those that can stimulate and support interunit collaboration to leverage their dispersed resources. or many years, multinational corporations could compete successfully by exploiting scale and scope economies or by taking advantage of imperfections in the world’s goods, labor and capital markets. But these ways of competing are no longer as profitable as they once were. In most industries, multinationals no longer compete primarily with companies whose boundaries are confined to a single nation. Rather, they go head-to-head with a handful of other giants that are comparable in size, in their access to international resources and in worldwide market position. Against such global competitors, it is hard to sustain an advantage based on traditional economies of scale and scope. Consider the oil industry. The industry is dominated by a handful of global players such as Exxon Mobil, BP, Shell and ChevronTexaco. They each have global exploration, refining and distribution operations, leaving little room for any company to gain competitive advantage with economies of scale. Similarly, they each have brands that are more or less equally well recognized the world over, reducing opportunities for a company to seize competitive advantage with an economy of scope based on its brand power. Such relative parity among multinational corporations can also be observed in consumer electronics, information technology, pharmaceuticals, banking, professional services and even retailing. Under these circumstances, MNCs must seek new sources of competitive advantage. While multinationals in the past realized economies of scope principally by utilizing physical assets (such as distribution systems) and exploiting a companywide brand, the new economies of scope are based on the ability of business units, subsidiaries and functional departments within the company to collaborate successfully by sharing knowledge and jointly developing new products and services.1 Multinationals that can stimulate and support collaboration will be better able to leverage their dispersed resources and capabilities in subsidiaries and divisions around the globe. Collaboration can be an MNC’s source of competitive advantage because it does not occur automatically — far from it. Indeed, several barriers impede collaboration within complex multiunit organizations. And in order to overcome those barriers, companies will have to develop distinct organizing capabilities that cannot be easily imitated. Interunit collaboration is not only difficult to achieve but also poorly understood. However, a framework that links managerial action, barriers to interunit collaboration, and value creation in MNCs can help managers “unpack” the concept. The framework conceptualizes collaboration as a set of management levers that reduce four specific barriers to collaboration, leading in turn to several types of value creation. (See “A Framework for Creating Value
Morten T. Hansen and Nitin Nohria
Morten T. Hansen is an associate professor of entrepreneurship at INSEAD in Fontainebleau, France. Nitin Nohria is Richard P. Chapman Professor of Business Administration at Harvard Business School in Boston. They can be reached at [email protected] and [email protected]
MIT SLOAN MANAGEMENT REVIEW
Through Interunit Collaboration,” p. 25.) It makes most sense to explain the three elements of the framework in reverse order, beginning with value creation....
...CollaborativeAdvantage: The Art of Alliances
Alliances between companies, whether they are from different parts of the world or different ends of the supply chain, are a fact of life in business today. Some alliances are no more than fleeting encounters, lasting only as long as it takes one partner to establish a beachhead in a new market. Others are the prelude to a full merger of two or more companies’ technologies and capabilities. Whatever the duration and objectives of business alliances, being a good partner has become a key corporate asset. I call it a company’s collaborativeadvantage. In the global economy, a well-developed ability to create and sustain fruitful collaborations gives companies a significant competitive leg up.
Yet, too often, top executives devote more time to screening potential partners in financial terms than to managing the partnership in human terms. They tout the future benefits of the alliance to their shareholders but don’t help their managers create those benefits. They worry more about controlling the relationship than about nurturing it. In short, they fail to develop their company’s collaborativeadvantage and thereby neglect a key resource.
Three years ago, I began a worldwide quest for lessons about productive partnerships, especially but not exclusively those intercompany relationships that spanned two or more countries and cultures. My...
7a: The project is estimated to be completed on July 12, 2012. The project will take 135 working days.
7b: Need Survey->Set Product Specs->Shelf Life Report->Secure Fruit Suppliers->Production Trials->Quality Trials->Quality Metrics->Quality Training->Prepare Product Launch
Need Survey->Set Product Specs->Equipment Rehab-> Production Trials->Quality Trials->Quality Metrics->Quality Training->Prepare Product Launch
7c: Select Distributors has the most total slack at 50 days.
7d: This network is very sensitive. It has 2 critical paths and free slack ranges from 5 to 50 days.
7e: The two milestones I chose were the production trials and preparing the product launch. I chose these because there would be no product without trials and preparing the product launch means that they are ready to be sold.
POS+ Project Part 1
POS+ Project Part 1
POS+ Project Part 1
Marketing staff, research and development, and the legal staff are over allocated. When attempting to resolve over allocation problems within slack, the marketing and legal staffs are no longer over allocated, but research and development still is over allocated. By doing this it has increased the sensitivity to the network because there are now 11 critical activities and there were only 10 before, and there is now 3 critical paths compared to only 2 previously. Also the slack has decreased...
...In the summer of 2005, Hurricane Katrina unleashed what resulted in a widespread devastation
wreaked on the city of New Orleans. New Orleans—the colorful, zealous Mississippi Delta city, home to
world-renowned restaurants, jazz and blues’ clubs, and universities, saw many of its neighborhoods
flooded, even washed away by Katrina’s strong waters that breached the barrier of its levees. The extent
of this catastrophe has triggered fierce debate over how the city should be rebuilt; taking into
consideration the city’s population shift, economic emergency, and continued below sea-level
vulnerability. Actually, there are some who think that the potential for a similar disaster in the future
begs the question whether the city should be rebuilt at all. I personally believe that New Orleans
deserves to be rebuilt.
As stated before, the continued below sea-level vulnerability is one of the major issues taken
into consideration when debating whether or not to rebuild the city. Some may argue that the river that
flooded New Orleans is a savage, untamable beast; aloof and unappeasable, with no heart except for its
own task (Document A). However, the city has fought its mighty river for generations. The river is simply
part of the New Orleans heritage, and is simply nothing new to its residents. This river is the same river
that helped impregnate and vitalize the soil of early settlers. The austere beauty of the river itself is in
fact too grand to be...
...Advantages of marginal costing
(Relative to the absorption costing)
Preparation of routine operating statements using absorption costing is considered less informative
for the following reasons:
1. Profit per unit is a misleading figure: in the example above the operating margin of Rs2 per
unit arises because fixed overhead per unit is based on output of 5,000 units. If another basis
were used margin per unit would differ even though fixed overhead was the same amount in
2. Build-up or run-down of stocks of finished goods can distort comparison of period operating
statements and obscure the effect of increasing or decreasing sales.
3. Comparison between products can be misleading because of the effect of arbitrary
apportionment of fixed costs. Where two or more products are manufactured in a factory and
share all production facilities, the fixed overhead can only be apportioned on an arbitrary basis.
4. Marginal costing emphasizes variable costs per unit and fixed costs in total whereas absorption
costing accounts for all production costs to calculate unit cost. Marginal costing therefore
reflects the behavior of costs in relation to activity. Since most decision-making problems
involve changes to activity, marginal costing is more appropriate for short-run decision-making
than absorption costing.
Advantages of Absorption Costing
(Relative to marginal costing)
...THE THREE ADVANTAGES & DISADVANTAGES OF COLLABORATIVE WRITING.
Advantages of collaborative writing
1. Multiple Ideas: makes for a better story or for a collection of facts. Two or more people
can come up with facts from different stand points.
2. Proof Reading: Collaboration between two or more people can also come in handy when
it comes to making sure that the project has little to no errors.
Most writer have the ability to understand what they have written, but he or she can also
misread what’s writing by filling in worlds that are not actually on paper. The
second or third party can help with errors and or short comings of the lead writer of the
3. Professionalism of the project: Collaboration of two or more people on a writing project
could increase the professionalism of how the writing is structured. When one of the
writers falls short of words to quickly and professionally explain a subject, the next writer
could have just the right words to fit the bill.
Disadvantages of collaborative writing
1. Miscommunication of the facts: The collaborators can waist time arguing the point
instead of sorting out facts.
2. Providing false information: In a rush of completing a project; false information gathered by
the second party could go uncheck and mistaken as truth, because of the trust with in the
Bulacan conducts RSPC Training
In preparation for a
tougher competition, selected
pupils from different schools
from Bulacan all gathered for a
4-day training led by the
These pupils were divided into 4 categories namely as
Collaborative Publishing (English
and Filipino) and Script Writing
(English and Filipino). Each category consists of 7 members. Selected school paper adviser supervised the training.
Prior to the competition,
they were met by Dr. Gregorio C.
Quinto, assistant schools division
superintendent. He advised the
students to observe discipline and
Dr. Quinto reminds the RSPC participants
do their best as they represent the
Province of Bulacan for the upcoming Regional Schools
make pride for the Bulacenos.
A Division Training
Press Conference at Clarkfield Airbase, Angeles City Pampanga (DN TRG) was held for the
on November 28-29.
Regional Schools Press Conalso reminded that we should
ference (RSPC) last Novemwork as a team. Bulacenos will
ber 11 at the Baliuag North
be proud of us because we gave
Central School (BNCS).
the guts to win this things and
Division training of North Central School (BNCS)
The DNTRG has start- to be eliminated for the NationRegional Schools Press Con- last November 12.
ed with the Opening message
ference (RSPC) in the team
The training for team by Dr. Gregorio C. Quinto. He als
events was held at the Baliuag
...QUESTIONS FOR DISCUSSION
1. Give examples of needs, wants, and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. What are the implications of each on Build-A-Bear´s actions?
Differentiating these three concepts is the key to get to a successful business. The CEO Maxine Clark knows it and puts it into practice to achieve all her goals. We can see the concept of needs when the customer has the desire or necessity to obtain this stuffed animal, also there is the part where the children are able to build their own bears in the way they can identify with it so they create a special bond. Also, there´s the essential need of humans that is to interact with someone else. This one is fulfilled perfectly thanks to the constant interaction that customers have through the process that goes from ‘stuff me’ to ‘name me’.
The concept of wants may differ between clients because of their culture and personality, so the way they personalize their toy is kind of unique. But the common want that all the customers can have is the one of spending time with their kids and creating that special union through the making of the bear. This union is the most important thing because the memory and the experience will last for a long time so it can fulfill some initial needs.
The concept of demands is seen when the customer go to the stores and demand the bears that will give them satisfaction because...
...Collaborative Writing Process
Collaborative writing is fast becoming an integral part of most college curriculums. Whether or not more knowledge is gained from team writing as opposed to individual writing is undetermined. Analyzing the team writing process and how it differs from the individual process may help us to better see the benefits.
Let us compare prewriting activities like brainstorming and topic selection. Writing as an individual you can pick a topic you are most interested in or one that you would enjoy learning about. As a team, you must consider everyone’s opinions. Each team member has to come up with a few ideas and present them to the team for discussion. Eventually, there would be a vote and a topic would be selected. In a team setting, it is best to select a leader. One person to help keep everything on task. In a team, you have several personalities and learning styles. “Personal conflict may arise because of agenda, status, power differences, lack of diplomacy, and sensitivity.” (Colen, K. & Petelin, R. 2004) In an individual setting, you have only yourself to answer to.
When brainstorming within a team you have several thought processes converging on one another at the same time. Each member does his or her own brainstorming and brings his or her ideas together. The team, as a whole, has to weed through all the ideas and settle on the ones best suited for the writing. In an individual brainstorming session the...